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UK pension funds dropped Â£5bn (â¬7.6bn) in domestic equities from their portfolios and invested Â£2.3bn in overseas stock, according to annual figures from the WM Company.

The changes in fund volumes reflected in overseas stock weightings rising to 28% from 25% of assets while the average weighting of UK stocks in pension portfolios remained at 39.2%, according to WM's database of more than 6,000 portfolios.

The main recipient was North America, with net cash inflows of £3bn. The market now accounts for 8% of the average fund.

Among the top 50 pension funds ranked by WM, most were approaching a 50-50 split between UK and foreign equities.